RIYADH: Saudi Arabia's annual inflation rate reached 1.7 percent in September, compared to the same period last year, driven by escalating housing costs, according to official data.

The General Authority for Statistics' report emphasized a 9.3 percent surge in housing, water, electricity, gas, and other fuel prices, which played a significant role in the inflation increase.

Housing rents experienced an 11.2 percent rise, with apartment rental prices increasing by 10 percent. The substantial weight of this category in the overall index had a notable impact on the inflation rate.

This trend is attributed to the limited supply of properties in Saudi Arabia, coupled with a growing population and an influx of expatriates seeking housing in the Kingdom.

Food and beverage prices increased by 0.8 percent, influenced by a 5.2 percent rise in vegetable prices. Restaurant and hotel prices climbed 1.7 percent, driven by a 1.5 percent increase in catering services.

The education sector saw a 1.6 percent rise, primarily due to a 3.8 percent increase in fees for intermediate and secondary education.

Conversely, prices for furnishings and home equipment dropped by 3.7 percent, mainly due to a 7 percent decrease in furniture, carpets, and flooring prices.

Clothing and footwear prices fell by 3.2 percent, with ready-made clothing prices declining by 5.5 percent.

Transportation costs also decreased by 3.3 percent, largely due to a 4.5 percent reduction in vehicle purchase prices. Communication services experienced a slight decrease of 1.6 percent.

On a monthly basis, the consumer price index rose 0.1 percent in September compared to August, largely driven by a 0.6 percent increase in housing-related expenses, including a 0.8 percent rise in actual housing rents.

The report also noted minor increases in food and beverages by 0.3 percent, restaurants and hotels, and personal goods and services by 0.1 percent each, compared to the previous month.

Meanwhile, there were decreases in the prices of clothing and footwear by 0.2 percent, furnishings, household equipment and maintenance by 0.3 percent, recreation and culture by 0.3 percent, communications by 0.1 percent, and tobacco by 0.1 percent.

The prices of education and transportation products remained stable.

In a separate report, GASTAT revealed the Wholesale Price Index increased by 3.1 percent in September compared to the same month last year, driven by an 8 percent rise in transportable goods, including a 12 percent increase in basic chemical prices and refined petroleum products.

Food products, beverages, tobacco, and textiles dropped 0.3 percent, while ores and minerals fell 3.6 percent, influenced by a decline in stone and sand prices.

On a monthly basis, the WPI edged up 0.3 percent in September, with transportable goods rising 0.9 percent due to a 9.6 percent increase in basic chemical prices.

The prices of ores and minerals decreased by 0.2 percent, due to a 0.2 percent drop in the prices of stone and sand.

Metal products, machinery and equipment decreased by 0.1 percent, while fish and other fishing products decreased by 2.7 percent, driven by a 0.1 percent dip in the agriculture and fishing products.

Another GASTAT bulletin highlighted significant shifts in the average prices of goods and services across Saudi Arabia in September.

The data, which tracks price movements on a monthly basis, showed both increases and decreases in various categories, reflecting dynamic market conditions.

Philippines Banana, Alsharbatli saw the highest increase at 15.8 percent, followed by local lettuce at 9.5 percent, local zucchini at 9.5 percent, Abu Sorra Egyptian orange at 8.6 percent, and Pakistani mandarin at 8.4 percent. Prices of coal and African teak wood increased by 1.7 percent each.

Conversely, several items experienced significant price drops during the same period. Lebanese peach saw the highest drop at 7.4 percent, followed by Indian pomegranates at 6 percent, hotel accommodation at 5.3 percent, local glass cheese at 5 percent, and dates at 4.8 percent.

Chinese iron-binding cables decreased by 3.1 percent, black national cement by 2.4 percent, 15 cm black block and Romanian wood by 1.2 percent each.